There is big news for taxpayers. In fact, the Union Cabinet approved the new Income Tax Bill on Friday (February 7, 2025). This bill will replace the six-decade-old IT Act.
New Income Tax Bill: The Union Cabinet on Friday (February 7, 2025) approved the new Income Tax Bill. This bill will replace the six-decade-old IT Act. The new bill will be free from all the amendments and sections related to income tax which are no longer relevant. Also, the language will be such that people can understand it without the help of a tax expert. This bill will not have provisions and clarifications or difficult sentences. This will also help in reducing litigation and thus reduce disputed tax demand.
Now it will be presented in Parliament
Sources said that the cabinet headed by Prime Minister Narendra Modi has approved the new bill. Now the new bill will be presented in Parliament next week and it will be sent to the Standing Committee on Finance of Parliament. Let us tell you that the first phase of the current budget session of Parliament is ending on February 13. The session will resume on March 10 and will continue till April 4.
Why is there a need for a new bill?
Actually, the Income Tax Law was made almost 60 years ago in 1961 and since then there have been many changes in society, the way people earn money and the way companies do business. Amendments were made to the Income Tax Act over time. Given the technological advancement and changes in the socio-economic fabric of the country, there is a dire need to completely change the old Income Tax Act.
Will there be a change in the tax slabs as well?
The purpose of implementing the new bill is to simplify the language and compliance processes. This means that there is no possibility of change in the income tax slabs in the new law, as it is usually done through the Finance Act. Let us tell you that in the year 2010, the ‘Direct Tax Code Bill, 2010’ was introduced in the Parliament. It was sent to the Standing Committee for investigation. However, due to the change of government in 2014, the bill was repealed.
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